Oil-Slick Shipping stock was priced at $70 at the beginning of the year.Over the year the corporation paid a dividend of $3.25 and its stock price at year-end was $65.What is the trailing dividend yield?
A)4.6 percent
B)4 percent
C)5 percent
D)5.4 percent
E)6 percent

Question

Quizplus · Accepted Answer

The trailing dividend yield is calculated by dividing the annual dividend by the stock's price at the beginning of the period. In this case, it's $3.25 / $70 = 0.0464, or 4.64%, which rounds to approximately 5 percent.

Oil-Slick Shipping Stock Was Priced at $70 at the Beginning